The tender, worth just under $11m, has been awarded to Katherine company NJ Homes to construct 20 new homes, or 65 new bedrooms, over the next three years.

Anne-Marie Ryan is the Chairperson for the Housing Reference Group in the community which is also known as Wugularr.

She welcomed the news, saying she had been waiting around two years for an update on the community's housing situation.

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"We've just been waiting for a long time for this to come, going on to two years now," she said.

"I kept ringing and asking and nothing. Just nothing. Dead end. No answers."

"It's the best [news] I've heard all day."

The homes are set to be built in a newly-developed subdivision, out of the community's flood zone which is regularly inundated during the wet season often and results in a number of homes having to be evacuated.

Ms Ryan said she would like, in the long term, to see houses equipped for floods rather than crowding all the homes into one side of the community.

"People fight a lot and they don't get along. And some people down here would like moving up to the new sub because it's too crowded...so I would like to see houses being built here," she said.

"We need space, you know?"

She said she would like to see young families prioritised for the new houses.

"I would like to see people that don't have houses [and are] still living with parents, grandparents and got kids of their own, grown up kids - I would like to see them move into a new house," she said.

"They're the ones who need it the most."

Housing and Homelands Minister Selena Uibo said the development would go "a long way towards alleviating overcrowding and improving liveability in the community."

"Beswick residents have been waiting a long time for this news," she said.

"Works will be underway for the next three years to enable sustainable employment opportunities. To this end, NJ Homes plans to work with Beswick locals to construct the new homes and will offer jobs, skills development, and training opportunities."

"The new 18-lot subdivision is completed and ready for the delivery of new homes."

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